Oakland, CA, US, Americas

$94.8 Million Non-Performing Office Loan | Oakland, CA

Asset Description

Jones Lang LaSalle ("JLL") has been retained on an exclusive basis by the Seller to arrange the sale of a $94.8 million non-performing office loan (the "Loan" or "Note"). The Loan is secured by the first-lien mortgage on the fee-simple interest in a class A office property in the CBD of Oakland, CA (the "Property" or "Collateral"). The Loan sits senior to a $19.3 million mezzanine loan and is in maturity default as of August 2023.

The Collateral is comprised of a 15-story office property and parking garage within downtown Oakland, CA. Built in 1981, the 276,845 SF Property was renovated from 2015 - 2019, including upgrades to the tenant lounge, parking garage, and fitness center. As of October 2023, the Property was 72% occupied. Featuring 379 parking spots via a detached parking garage and open-air spaces, the Property is favorably positioned with close access to Lake Merritt and I-580.

The offering presents investors the opportunity to acquire the Loan at a favorable basis, significantly below replacement cost, with a potential path to ownership.

Transaction Timeline

Indicative Bid Date: March 7, 2024

Best & Final Bid Date: March 28, 2024

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Attributes

Building area net

25,821 m²

Occupancy

72%

Year built

1981

Investment Highlights

Path to Ownership

A consensual Deed-in-Lieu ownership option is anticipated to be available prior to closing.

Recent Capital Injections

The Property experienced a $20mm capital injection from 2015 to 2019 to enhance tenant amenities, including significant upgrades to the lobby, parking garage, building cosmetics, and a new tenant lounge.

Highly Amenitized

Tenants enjoy a state-of-the-art amenity package, including an exceptional tenant lounge, fitness center, EV station, and conference center.

Value-Add Opportunity

With a current occupancy of 72%, investors are provided a significant value-add component on a class A property with stable in-place cash flow.

Exceptional Location

Conveniently placed within the Oakland CBD, the asset is located near major arteries of transportation and has direct access to multiple urban greenways.

A consensual Deed-in-Lieu ownership option is anticipated to be available prior to closing.